Personal Finance
- California to make financial literacy classes a requirement to graduate high school [USA]abc7.com California to make financial literacy classes a requirement to graduate high school
Governor Gavin Newsom announced on Thursday an agreement that requires all California high school students to take a semester-long personal finance education course starting by the 2027-28 school year.
- Best way to buy a house for another person? [USA]
I'm in an extremely fortunate position where my Mom, upon learning about current mortgage rates and why I haven't bought a house yet, wants to essentially be my bank to buy a house. As in, she wants to fund the house, put it in my name, and I pay her a reasonable down payment and pay a "mortgage" to her at 2-3%. So what would be the best way to do this?She buys the house then transfers the deed? Should she just transfer the cash and I purchase it?
Side note: I know people are usually against doing big purchases with family, but I don't really see a downside since the house will be in my name, and with that 2-3% rate, the payments will be similar to my rent even considering maintenance and property tax.
- USA: The financial meltdown is beginning.www.nbcnews.com The collapse of a fintech firm with 10 million users has left many Americans without access to their money
A court dispute has ensnared potentially millions of Americans, leaving them without access to their money for nearly two weeks.
They are keeping this quiet, but this affects 2.9% of US bank customers.
- We shouldn't have to work 40 hours a week to afford a basic life. We do because our currency is constantly losing value. This is by design.
There's a lot of talk about inflation and its causes. Is it corporate greed? Supply chain issues? One clear base cause of inflation less talked about is having an inflationary currency supply. Any other inflation caused by supply chain issues, corporate greed, lack of market competition, etc is just added on top of that. Fiat inflationary currency is a rather new invention in terms of the human timeline. In the US, Nixon is the start of it. Central banks aim for 2-3% inflation in "good years". The money supply expands, the portion of that supply a single dollar represents, and therefore its value, decreases. This isn't a conspiracy, it's government policy, and both parties gleefully support it because it benefits their rich donors.
Think of it: in the last 50 years, everything has gotten cheaper to produce thanks to increasing mechanization, outsourcing to cheap labor/low regulation countries, and extremely efficient supply chains. Yet so many things "cost more" than they did 50 years ago. Even basics like bread. What used to be 5c in the US in the 50s now costs $5.00. How is that the case? Shouldn't it cost less? Where is that "extra efficiency" going if not to lower prices? The answer: bread is the same value it's always been, the money has gotten less valuable. This is how they keep working class people running on a treadmill, never able to achieve economic mobility.
Inflationary currency devalues the currency you worked hard to earn by increasing the supply. It hits the middle class the worst because they have more of their net wealth in cash, often in the form of emergency funds, savings, and putting together enough money for a down payment on a home. Rich people have their money in assets which aren't harmed by currency inflation. Actually, even worse, it inflates the value of those assets! If the dollar loses value (all other things being equal), it takes more dollar to buy a share in Amazon, just like it takes more dollars to buy a loaf of bread. Poor people live hand to mouth, so their net wealth is not impacted much, but inflationary currency prevents them from saving and "moving up". If you want to identify the causes of increasing wealth disparity, the inability of people to save money and theft of value from the middle class via money supply expansion is a major one.
- Please explain leverage to me
can someone explain leverage to me as practised by those RE
bullshittersfinfluencers. I feel their whole spiel is just bullshit but I don't know enough to be sure about it.according to them, you "buy" a home - you put X% down and pay your first monthly (and then post on r/firsttimehomebuyer). then you go to (another?) bank and say "look I got this house I wanna use as collateral" and they go "wow you own a house! sure, have this bag of money"... repeat until you "own" like a city block.
like, how does that not crash and burn at the first step, just a cursory glance at the asset's status? how are they not "lol you ain't got no house dumbass come back in 20 years when you actually own it"?
- Inflation is higher than they would like you to believe.
The US government is telling everybody that inflation is 3.4% per year. That is not correct. Try 14.2% and that's about right. Source : gold/usd 1 year simple moving average.
- Wealth inequality starts at birth. Lawmakers debate whether child savings accounts can helpwww.cnbc.com Wealth inequality starts at birth. Lawmakers debate whether child savings accounts can help
The 401Kids Savings Act would create savings accounts for newborns. While state child savings accounts have shown promise, inflation and taxes prompt concerns.
- YNAB vs Quicken Simplifi
I wanted to start using a budgeting program to better organize my spending/ goals, and basically narrowed it down to 3 --YNAB, Actual and Quicken Simplifi.
I setup a self-hosted instance of Actual and was able to import my spending from my account by exporting from my bank and importing into the app, however this seemed like it might get tedious over time, so I decided to try YNAB.
So far this has been pretty straight forward. I’m still waiting for things to sync up with my linked accounts, but I like it so far. I would try Simplifi but there’s no trial period there; though the graphs and UI make it seem appealing.
Anyone here have any experience with Simplifi/ YNAB, and why might you chose one over the other?
- The best european online card that doesn't block your account
I'm looking for the top European bank that doesn't block your funds without reason. For instance, many individuals have reported online that Revolut has blocked their accounts suddenly and sometimes for various months.
- Recommendation for software/ apps
Hello,
So I recently revisited (and recreated) my savings spreadsheets so that I can track my
needs
,wants
andsavings
. To try to keep track of myfixed costs
and also try to follow the50/30/20
rule (not sure if this is a good strategy or not).I have everything mostly sorted, but as new things come up, say a new subscription or a cancelled one, changes in rent, etc. It will be a bit of a hassle to keep this up to date.
Are there any software/ apps that you guys use that you like that make this kind of thing easier to see where your money is going?
- Was the 401(k) a Mistake? How an obscure, 45-year old tax change transformed retirement and left so many Americans out in the cold.www.nytimes.com Was the 401(k) a Mistake?
How an obscure, 45-year-old tax change transformed retirement and left so many Americans out in the cold.
- Selecting a CFP - not just the basics
How would you go about selecting a Certified Financial Planner?
My wife and I are financially successful adults, but we need guidance with the next steps, including:
- Private equity co-investment
- College savings for children with special needs who may or may not attend university
- Retirement savings beyond the standard 401k and IRA options
- The tax ramifications of all of the above
My friends are generally not at this level of planning needs, so those who have worked with a CFP have had only much more basic questions. We have known plenty of financial advisers over the years who just give bad advice or canned advice. I expect our needs will become more complex over the next decade.
How do we find a quality CFP who can help with the above? What is a reasonable price to pay for this help?
Thank you for taking the time to share your thoughts!
- The IRS Created a Free Tax Filing System, and TurboTax is Reeling (USA)
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- Americans are falling behind on their paymentswww.cnn.com Analysis: Americans are falling behind on their payments | CNN Business
America’s relentless spending has kept the economy motoring. But it’s starting to worry some observers.
- Home prices have outpaced inflation by 2.4 times
cross-posted from: https://lemmygrad.ml/post/4307103
> Home prices have outpaced inflation by 2.4 times
- A Huge Number of Homeowners Have Mortgage Rates Too Good to Give Upwww.nytimes.com A Huge Number of Homeowners Have Mortgage Rates Too Good to Give Up
On a scale not seen in decades, many Americans are stuck in homes they would rather leave.
- The craziness of the US stock Market
cross-posted from: https://lemmygrad.ml/post/4277310
> The craziness of the US stock Market
- (UK) Transferring Stocks and Shares ISA
Hi. With the new tax year fast approaching, I've been contemplating transferring my current stocks and shares ISA account with IBKR UK to another provider/brokerage. I am interested in InvestEngine since they seem to have lower fees. However, I'm wondering how this process will work, especially since I have shares in stocks and ETFs that don't seem to be offered by InvestEngine, but which I'd ideally like to keep. As such, is it possible to transfer ISA accounts to a new service provider if they don't offer the shares held in the account? If it is, how might I trade those shares in the future?
- What are "complicated" taxes that require a professional? (USA)
I always see advice about which software to use and there's always the advice that FreeTaxUSA is the best bang for your buck and does everything you need for when your taxes are "simple." I've used and thought it was great for years. But as my career has grown and no longer filed as a single I've begun to question when my taxes and earnings become "complicated" to the point where it is worthwhile to have a professional do my taxes. Are there general recommended bullet points or scenarios?
- Converted from Nonexempt Salaried to Nonexempt Hourly
As the title says, should I be concerned? I get the impression this is just a bureaucratic change (company doesn't want to deal with both salaried and hourly workers for timesheet reporting). But I'd like to make sure.
- Japanese Yen stands tall near one-month top against USD on hawkish BoJ talks
■ The Japanese Yen continues to draw support from expectations for a hawkish BoJ pivot.
■ Bets for a June Fed rate cut undermine the USD and further exert pressure on USD/JPY.
■ An upward revision of Japan’s Q4 GDP print contributes to the offered tone on Monday.
- USA: New hourly job filling out a W-4, single person, no dependents, what's the lowest deduction we can choose?
Goal: the least amount of withholdings possible
- [USA] Index Funds Have Officially Won
> The inevitable at last arrived. Last month, for the first time, passively managed funds controlled more assets than did their actively managed competitors.
I honestly thought this happened a while ago...
- 2024 HSA partial year limits
Need help please. If I am enrolled in 2024 for 10 months of the year (March-December) in an HSA-elligible HDHP will I be able to max out my HSA to the individual contribution limit of $4,150 or will I get hit with a big tax penalty? Do I have to "pro-rate" my contributions and subtract the first two months since I was not enrolled during that time? Very confused about this and am seeking clarity as I am reading conflicting information online while trying to max out my HSA if possible. Thank you for any assistance.
- [USA] [401K] I was in a settlement for a class action lawsuit involving a 401k. I just received a 1099r. Box 7 has code "7"; I am under the age to withdraw without penalty. Will i receive a penalty?
Sorry for long title:
- USA
- in a state with no state income tax
- my former employer (international corporation) messed up 401ks, resulting in class action lawsuit
- settlement gave claimants <$20 each
- just received a 1099r for this amount
- box 7 = "7", which means normal distribution per IRS
- I am under 59.5
I don't understand the table on the IRS website. Just wondering if there will be a penalty for this settlement "distribution" or if it is waived since it was part of a lawsuit. I usually do my taxes by myself so I don't have anyone to ask.
- When people say they lost their 401k
I've had a few people in my life tell me that they lost X % of their 401k during the (insert financial crisis).
Recently when a friend told me they lost 50% of their 401k in the 2008 time, I said: "Well you didn't really lose anything, because you still had the stocks, and even though they were worth less, you still had the same number of stocks, so you could have waited it out?"
To which my friend replied: "That would be true if the person managing my 401k didn't sell".
I hadn't actually thought about that. I mean personally most of my funds are in age based target funds, but those funds are also managed by someone, right? So is there a way to prevent someone from selling your stocks if the economy tanks? I have a pretty long retirement horizon (still in my 30s) so I can weather the storm for a bit.
Edit: Thank you everyone for the insightful answers. This really helps to clear things up
- Low Interest Loan Repayment or CD/HY Savings
Looking to pay off $15k of student loan debt of my partner. It's something we could wipe out with cash on hand if we wanted to relatively quickly. But one of the loans is 4.5%. Am I better off just riding that out but keeping the cash in for that loan in a HY savings account or keep reinvesting it in short term CD's that have a 5% return and to have more liquidity?
There's a part of me that used to really enjoy the piece of mind of being debt free when I paid off my student loans. But now that I'm more financially established and disciplined, I'm wondering if it's better to pay it off slowly.
- Dealing with a BS "Billing Desk" [USA]
What are my options when my provider sends me a bill without submitting a claim with my med insurance, and is ignoring my repeated requests to submit the claim and send me a revised bill post-settlement? How do I prove that I do not owe the billed amount, and I do not owe them anything until they claim it through my insurance first?
Unfortunately, I did encounter something very similar with a previous provider - and I naively decided to wait and watch when their "billing desk" was busy ignoring my requests to submit the claim first - just to get to the day when they sent it to collections. Dealing with collections is another nightmare, and while it went in my favor at that time, I promptly left that provider and switched to another.
So I want to be cautious here this time, because although the "billing desk" of my provider might be a bunch of inefficient a-holes, I don't want to deal with collections again.
Would welcome any insights ! Thanks !
- Is the IRS accepting tax returns early?
I had my taxes all sorted(I'm using Tax Slayer) and was just waiting for them to actually submit the return when it's time. I was figuring it wouldn't be until around the 29th, but I just got an email tonight that said the irs had accepted my federal return. Are they accepting returns already, or is that email probably a mistake and/or unrelated? Any ideas?
- Why is it that the more I earn, the higher percentage of federal withholdings they take?
One paycheck I earned only $77 and the govt withheld 9% of it.
Then I earned $2,000 and they withheld 26% of it.
Is everyone else experiencing this?
The less you earn, the less percentage-wise the govt withholds? The more you earn, the greater percentage they withhold?
At this rate, I fear that if I hypothetically would earn $8,000, they would withhold 100% of it. Do you see where this is going?
- If I'm legal resident of a state with no state income tax, but work a W-4 job in a different state that has a very high state income tax...
... is it normal/legal for the state I work in to withhold state income tax from my paychecks?
- Americans can no longer afford their carswww.newsweek.com Americans can no longer afford their cars
Just 10% of new car listings are currently priced below the $30,000 mark, after years of price increases have made vehicles unaffordable to millions.
- The 'old American Dream died,' Realtor details salary needed to buy a home, afford a middle class life in 2024finance.yahoo.com The 'old American Dream died,' Realtor details salary needed to buy a home, afford a middle class life in 2024
Orlando realtor Freddie Smith discusses how owning a home and living a typical middle class life has become increasingly unattainable for most millennials and older Gen Z.
cross-posted from: https://lemmy.ml/post/10623652
> TL;DR: Americans now need to make $120K a year to afford a typical middle-class life and qualify to purchase a home. Minimum.
- should the US consider a currency redenomination?
Prices of things are becoming absolutely insane. $800+ rent, $30,000 cars, $10 sub sandwiches, etc. It would be nice to do a 3/1 split and cut everything by 2/3. Then we would have $266 rent, $10,000 cars, and $3.33 sub sandwiches. Wages, debts, everything would drop to 1/3 what they are now. It would also make coins useful again since a vending machine soda would be 2 quarters again.
- US Securities Act of 1933, [US] Person living in [CH]
I just came here to say fuck the US Securities Act of 1933. I am sure it must have some very important reason for existing, but at the moment it is preventing me from doing anything reasonable with my money.
In all seriousness, though, does any US Person who has lived abroad somewhat long term have any experience doing money business in the country of residence?
Specifically, I am trying to put some money (15K) aside for further education in about 7–10 years, and I am looking for an option to at least keep inflation at bay. Every option I look at from a Swiss bank has a clause in the fine print, blaming the US Securities Act of 1933 for not allowing any US Persons to even look at or distribute the document. Archive.org
Is my only option to invest in American banks? I just worry that it will complicate Taxes to a painful degree. I would appreciate any hints in the right direction